This article is a translation of the Japanese original. Where the two differ, the Japanese version prevails. Read the Japanese original（日本語版を読む）
Yes. A foreign business owner can use many of Japan's public funding schemes in the same way as a Japanese national. Japan's subsidies, grants and loan schemes attach weight to the stability and future prospects of the business and to the good faith of the applicant, so direct restrictions based on nationality are few. That said, screening assumes that you hold a status of residence, that you have a stable business plan, and that you are meeting your tax obligations.
An enquiry from someone who does not know whether a foreign business owner can use Japanese subsidies or loans, or where to begin.
Yes. Direct restrictions based on nationality are few, and weight is attached to the stability and future prospects of the business.
A foreign business owner can use many of Japan's public funding schemes in the same way as a Japanese national. Japan's subsidies, grants and loan schemes attach weight to the stability and future prospects of the business, and to the good faith of the applicant, so direct restrictions based on nationality are few.
Screening does, however, assume the following.
The main ones are national subsidies supporting the opening up of sales channels, business restructuring and the introduction of IT, together with grants relating to employment.
Subsidies and grants are funds that do not have to be repaid, and are provided by the national government or by local authorities in order to achieve particular policy aims.
This subsidises part of the cost where a small business works on opening up sales channels (activities to find new customers) or on raising productivity (improvements so as to work more efficiently). Building a website, advertising and publicity, and refurbishing premises are among the things covered.
It is a relatively easy scheme to use if you are new to business or are running a small operation. Making clear in the business plan on your application form the perspective that is yours as a foreign national, and the customers you are aiming at (visitors to Japan, a particular foreign community and so on), can make your application more likely to be accepted.
These support small and medium-sized companies and sole traders that are working on a bold restructuring of their business, such as moving into a new field, changing what the business does, or reorganising it. The amounts are large, and they suit businesses considering a new venture. Setting out something with good prospects — developing a business using AI or DX (digital transformation), or a new business model connecting your home country and Japan — raises the chance of being accepted.
This subsidises part of the cost where a small or medium-sized company introduces IT tools (software, services and the like) that match its own issues and needs, so as to encourage more efficient operations and the use of data. It can be used for accounting software, customer management systems, building a multilingual website and so on.
There are also many grants you can use when taking on and training employees. Some can be used in particular for recruiting foreign staff or for training that raises employees' skills. These come under the Ministry of Health, Labour and Welfare, and the specialists here are certified social insurance and labour consultants.
The main options are the start-up loans of the 日本政策金融公庫 and the loan schemes of local authorities.
A loan has to be repaid, but it is very effective when you need to raise a substantial sum, for working capital or for capital investment.
This is one of the public financial institutions that foreign business owners find easiest to use. It has loan schemes for start-ups, aimed at people who are starting a new business or who have not yet completed 2 tax filing periods since the business began, and the fact that as a rule no security or guarantor is required makes it a major option for foreign entrepreneurs. There are also general loan schemes (ordinary loans) covering businesses in a wide range of fields.
Local authorities (prefectures and municipalities) also have their own loan schemes, run together with financial institutions, in order to support small and medium-sized companies. The authority guarantees part of the loan or subsidises the interest, so as to make it easier for such companies to borrow from a financial institution. Please check on the website of the authority where you live, and elsewhere, whether there is a loan scheme supporting start-ups or small and medium-sized companies. These schemes are rooted in the local area, and some have counters that understand foreign business owners.
A convincing business plan, together with your own funds and the management of your credit record, are the key.
Subsidies, grants and loan schemes are not the preserve of Japanese nationals. What the schemes cover, and when applications are invited, change from year to year, so please gather the latest information from the websites of the national government and local authorities, from the Chamber of Commerce and Industry, and from specialists such as a registered certified administrative procedures legal specialist (shinsei-toritsugi gyoseishoshi), and then choose the scheme that suits your business.
They are not excluded. Japan's subsidies, grants and loan schemes attach weight to the stability and future prospects of the business and to the good faith of the applicant, so direct restrictions based on nationality are few and you can use them in the same way as a Japanese national.
It assumes that you hold 在留資格「経営・管理」, that you have a stable business plan, and that you are properly meeting your tax obligations.
If you hold 在留資格「永住者」, there is no concern about your period of stay, so screening for a loan tends to be more favourable. It is not decided by the status of residence alone, however: weight is attached to whether the business plan can be carried out and to its profitability.
3 things are looked at strictly: whether the business plan can be carried out, its profitability, and what the funds will be used for. Alongside these, having a certain amount of your own funds, and having no unpaid taxes or social insurance contributions, also matter.
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This page is a translation of the Japanese original. Where the two differ, the Japanese version prevails.